Tesla Now Highest Price Target On Wall Street
Shares of Tesla, owned by tech entrepreneur and billionaire Elon Musk, surged as much as 5.6 per cent on Monday – trading above US$500 for the first time ever.
It comes after Colin Rusch of Oppenheimer raised his Tesla price target to US$612 from US$385 on the same day and reaffirmed an ‘outperform’ rating.
The new highest price target has also roughly elevated Tesla’s share prices up 28 per cent from where it was traded on Friday.
Rusch wrote in the Monday note that while Tesla has ‘stumbled through growing pains, we believe the company has reached critical scale sufficient to support sustainable positive FCF.’
Tesla now, according to Rusch, is also a ‘must-own’ stock that could benefit from inclusion in additional indexes.
‘We believe the company’s risk tolerance, ability to implement learnings from past errors, and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace,’ he wrote.
In addition, Tesla’s technology advancements, power and operating system and power and data architecture are estimated to be about three years ahead of the competition, based on available vehicles and checks on new platforms, according to Rusch.
The recent gains made Tesla the highest-valued US automaker in history and have elevated its market value above more than Ford and GM combined.
Tesla has gained 14 per cent year-to-date through Friday’s close.